US-Iran tension makes gold dearer by Rs 1,000 in Nepal

  • January 5, 2020

The impact of rising tension between Iran and the US can be clearly seen in the Nepali gold market as well since the price of bullion has reached a record high today.

Earlier, the highest price of gold was recorded at Rs 74,500 per tola (11.66 grams). However, it escalated to Rs 75,500 per tola (11.66 grams) today.

Similarly, the price of silver has reached Rs 900 per 10 grams. The Federation of Nepal Gold Dealers’ Association has published the new price list today.

The price of Chhapawal gold, which was traded at Rs 74,500 last Friday, has shot up by Rs 1,000 today. Likewise, the price of Tejabi gold has also increased from Rs 74,200 to Rs 75,200 per tola (11.66 grams).

Why has gold price shot up?

On Friday, tension between Iran and the US heightened after the Iranian Quds Force chief Major-General Qassem Soleimani and Iraqi commander Abu Mahdi al-Muhandis were killed in a US airstrike at the Baghdad International Airport.

This prompted international investors to flock towards gold, which is considered a safe haven investment at times of turmoil. Hence, the gold price went up in the domestic market, according to Federation of Nepal Gold and Silver Dealers’ Association.

As per the Association, the price of gold and silver has been affected in Nepal due to the rise of gold price in the global market following fears of war between US and Iran.

The Economic Times has reported that gold price in the US has reached the highest point in the last four months. Similarly, Goldberg said that gold price has reached the highest level in five years due to tensions in the Middle East.